Hayward Holdings Announces Third Quarter Fiscal Year 2024 Financial Results
Hayward Holdings (NYSE: HAYW) reported strong Q3 FY2024 results with net sales increasing 3% to $227.6 million and net income rising 40% to $16.5 million. The company demonstrated solid performance with Adjusted EBITDA growing 8% to $51.1 million and diluted EPS increasing 40% to $0.07. Gross profit margin expanded by 190 basis points to 49.7%. The North America segment showed 5% growth, while Europe & Rest of World experienced a 7% decline. Based on strong execution, Hayward refined its FY2024 guidance, projecting net sales of $1.020-1.040 billion and Adjusted EBITDA of $260-270 million.
Hayward Holdings (NYSE: HAYW) ha riportato risultati positivi per il terzo trimestre dell'anno fiscale 2024, con un aumento del 3% delle vendite nette a 227,6 milioni di dollari e un aumento del 40% del reddito netto a 16,5 milioni di dollari. L'azienda ha dimostrato una solida performance con un EBITDA Adjusted in crescita dell'8% a 51,1 milioni di dollari e un EPS diluito in aumento del 40% a 0,07 dollari. Il margine di profitto lordo è aumentato di 190 punti base, raggiungendo il 49,7%. Il segmento della Nord America ha mostrato una crescita del 5%, mentre in Europa e nel resto del mondo si è registrata una flessione del 7%. Sulla base di una forte esecuzione, Hayward ha aggiornato le previsioni per l'anno fiscale 2024, prevedendo vendite nette tra 1,020 e 1,040 miliardi di dollari e un EBITDA Adjusted tra 260 e 270 milioni di dollari.
Hayward Holdings (NYSE: HAYW) reportó resultados sólidos para el tercer trimestre del año fiscal 2024, con un aumento del 3% en ventas netas alcanzando los 227.6 millones de dólares y un incremento del 40% en ingresos netos a 16.5 millones de dólares. La compañía mostró un sólido desempeño con un EBITDA Ajustado creciendo un 8% hasta 51.1 millones de dólares y un EPS diluido aumentando un 40% hasta 0.07 dólares. El margen de utilidad bruta se amplió en 190 puntos básicos, alcanzando el 49.7%. El segmento de América del Norte mostró un crecimiento del 5%, mientras que Europa y el resto del mundo experimentaron una caída del 7%. Basado en una fuerte ejecución, Hayward refinó su guía para el año fiscal 2024, proyectando ventas netas de entre 1,020 y 1,040 millones de dólares y un EBITDA Ajustado de entre 260 y 270 millones de dólares.
하이워드 홀딩스 (NYSE: HAYW)는 2024 회계연도 3분기 강력한 실적을 발표했습니다. 순매출이 3% 증가하여 2억 2760만 달러를 기록했고, 순이익은 40% 상승하여 1650만 달러에 이릅니다. 회사는 조정된 EBITDA가 8% 증가하여 5110만 달러에 달하고, 희석주당순이익이 40% 증가하여 0.07달러에 도달함으로써 견실한 성과를 나타냈습니다. 총 이익률은 190bp 확대되어 49.7%에 도달했습니다. 북미 부문은 5% 성장했으며, 유럽 및 기타 지역에서는 7% 감소했습니다. 하이워드는 강력한 실행을 바탕으로 2024 회계연도 가이드를 정제하여, 10억 2000만 ~ 10억 4000만 달러의 순매출과 2억 6000만 ~ 2억 7000만 달러의 조정 EBITDA를 전망했습니다.
Hayward Holdings (NYSE: HAYW) a annoncé des résultats solides pour le troisième trimestre de l'exercice 2024, avec une augmentation de 3% des ventes nettes, atteignant 227,6 millions de dollars, et un ressortissant net en hausse de 40% à 16,5 millions de dollars. L'entreprise a démontré des performances solides avec un EBITDA ajusté en croissance de 8% à 51,1 millions de dollars et un BPA dilué en hausse de 40% à 0,07 dollar. La marge brute a augmenté de 190 points de base pour atteindre 49,7%. Le segment Amérique du Nord a affiché une croissance de 5%, tandis qu'Europa et le reste du monde ont connu un déclin de 7%. Sur la base d'une exécution solide, Hayward a affiné ses prévisions pour l'exercice 2024, projetant des ventes nettes entre 1,020 et 1,040 milliards de dollars et un EBITDA ajusté entre 260 et 270 millions de dollars.
Hayward Holdings (NYSE: HAYW) hat im dritten Quartal des Geschäftsjahres 2024 starke Ergebnisse vermeldet, mit einem Anstieg der Nettoumsätze um 3% auf 227,6 Millionen Dollar und einem Gewinnanstieg von 40% auf 16,5 Millionen Dollar. Das Unternehmen zeigte eine solide Leistung, wobei das bereinigte EBITDA um 8% auf 51,1 Millionen Dollar wuchs und der verwässerte EPS um 40% auf 0,07 Dollar stieg. Die Bruttomarge erweiterte sich um 190 Basispunkte auf 49,7%. Der nordamerikanische Sektor zeigte ein Wachstum von 5%, während Europa und der Rest der Welt einen Rückgang von 7% verzeichneten. Aufgrund einer starken Ausführung hat Hayward seine Prognose für das Geschäftsjahr 2024 angepasst und erwartet Nettoumsätze zwischen 1,020 und 1,040 Milliarden Dollar sowie ein bereinigtes EBITDA zwischen 260 und 270 Millionen Dollar.
- Net sales increased 3% to $227.6 million
- Net income grew 40% to $16.5 million
- Adjusted EBITDA increased 8% to $51.1 million
- Gross profit margin expanded 190 basis points to 49.7%
- Operating income increased 16% to $33.4 million
- Year-to-date cash flow from operations increased 27% to $275.8 million
- North America segment sales grew 5%
- Europe & Rest of World segment sales decreased 7%
- SG&A expenses increased 9% to $64.5 million
- Volume declined in Middle East and Asia markets
- Lower new construction and remodel activity in the U.S.
Insights
The Q3 FY2024 results demonstrate solid operational execution with notable improvements across key metrics.
Particularly impressive is the
The pool industry's fundamentals remain robust, with Hayward effectively capitalizing on the secular outdoor living trends. The company's strategic focus on SmartPad™ technology and aftermarket sales (historically
While facing headwinds in Middle East and Asia markets, the company's strong North American performance and operational improvements provide a solid foundation for sustained growth. The reduction in net leverage to target range enhances financial flexibility for future strategic initiatives.
THIRD QUARTER FISCAL 2024 SUMMARY
-
Net Sales increased
3% year-over-year to$227.6 million -
Net Income increased
40% year-over-year to$16.5 million -
Adjusted EBITDA* increased
8% year-over-year to$51.1 million -
Diluted EPS increased
40% year-over-year to and adjusted diluted EPS* increased$0.07 22% year-over-year to$0.11 -
Year-to-date cash flow from operations increased
27% year-over-year to$275.8 million
CEO COMMENTS
“I am pleased to report third quarter results consistent with expectations,” said Kevin Holleran, Hayward’s President and Chief Executive Officer. “We delivered sales and earnings growth, strong gross profit margin expansion, and increased cash flow. This performance enabled us to reduce net leverage into our targeted range. ChlorKing performed well in the first full quarter of ownership, and we are already seeing the synergies of the integration with Hayward’s existing commercial pool business. The early buy program is progressing in line with our expected participation. We continue to execute our growth strategy by advancing our technology leadership position with innovative connected pool solutions, leveraging our culture of continuous improvement and operational excellence, and expanding customer relationships. We are updating our 2024 outlook to reflect modestly improved sales and profitability.”
THIRD QUARTER FISCAL 2024 CONSOLIDATED RESULTS
Net sales increased by
Gross profit increased by
Selling, general, and administrative expense (“SG&A”) increased by
Operating income increased by
Interest expense, net, decreased by
Income tax expense for the third quarter of fiscal 2024 was
Net income increased by
Adjusted EBITDA* increased by
Diluted EPS increased by
THIRD QUARTER FISCAL 2024 SEGMENT RESULTS
Net sales increased by
Segment income increased by
Net sales decreased by
Segment income decreased by
BALANCE SHEET AND CASH FLOW
As of September 28, 2024, Hayward had cash and cash equivalents of
OUTLOOK
Hayward is refining its full-year 2024 guidance ranges to reflect continued strong execution resulting in modestly improved sales and profitability. For fiscal year 2024, Hayward now expects net sales of
The pool industry remains attractive and benefits from sustainable secular demand trends in outdoor living. Hayward continues to leverage its competitive advantages and drive increasing adoption of its leading SmartPad™ pool equipment products both in new construction and the aftermarket, which has historically represented approximately
Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward’s outlook.
CONFERENCE CALL INFORMATION
Hayward will hold a conference call to discuss the results today, October 29, 2024 at 9:00 a.m. (ET).
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at https://investor.hayward.com/events-and-presentations/default.aspx. An earnings presentation will be posted to the Investor Relations section of the company’s website prior to the conference call.
The conference call can also be accessed by dialing (877) 423-9813 or (201) 689-8573.
For those unable to listen to the live conference call, a replay will be available approximately three hours after the call through the archived webcast on the Hayward website or by dialing (844) 512-2921 or (412) 317-6671. The access code for the replay is 13749102. The replay will be available until 11:59 p.m. Eastern Time on November 12, 2024.
ABOUT HAYWARD HOLDINGS, INC.
Hayward Holdings, Inc. (NYSE: HAYW) is a leading global designer and manufacturer of pool and outdoor living technology. With a mission to deliver exceptional products, outstanding service and innovative solutions to transform the experience of water, Hayward offers a full line of energy-efficient and sustainable residential and commercial pool equipment including pumps, heaters, sanitizers, filters, LED lighting, water features, and cleaners all digitally connected through Hayward’s intuitive IoT-enabled SmartPad™.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commission (the “SEC”). Such forward-looking statements relating to Hayward are based on the beliefs of Hayward’s management as well as assumptions made by, and information currently available to it. These forward-looking statements include, but are not limited to, statements about Hayward’s strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements contained in or incorporated by reference in this earnings release that are not historical facts. When used in this document, words such as “guidance,” “outlook,” “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to Hayward are intended to identify forward-looking statements. Hayward believes that it is important to communicate its future expectations to its stockholders, and it therefore makes forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that Hayward is not able to accurately predict or control, and actual results may differ materially from the expectations it describes in its forward-looking statements.
Examples of forward-looking statements include, among others, statements Hayward makes regarding: Hayward’s 2024 guidance and outlook; business plans and objectives; general economic and industry trends; business prospects; future product development and acquisition strategies; future channel stocking levels; and growth and expansion opportunities. The forward-looking statements in this earnings release are only predictions. Hayward may not achieve the plans, intentions or expectations disclosed in Hayward’s forward-looking statements, and you should not place significant reliance on its forward-looking statements. Hayward has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Moreover, neither Hayward nor any other person assumes responsibility for the accuracy and completeness of forward-looking statements taken from third-party industry and market reports.
Important factors that could affect Hayward’s future results and could cause those results or other outcomes to differ materially from those indicated in its forward-looking statements include the following: its relationships with and the performance of distributors, builders, buying groups, retailers and servicers who sell Hayward’s products to pool owners; impacts on Hayward’s business from the sensitivity of its business to seasonality and unfavorable economic business and weather conditions; competition from national and global companies, as well as lower-cost manufacturers; Hayward’s ability to develop, manufacture and effectively and profitably market and sell its new planned and future products; its ability to execute on its growth strategies and expansion opportunities; Hayward’s exposure to credit risk on its accounts receivable, impacts on Hayward’s business from political, regulatory, economic, trade, and other risks associated with operating foreign businesses, including risks associated with geopolitical conflict; its ability to maintain favorable relationships with suppliers and manage disruptions to its global supply chain and the availability of raw materials; Hayward’s ability to identify emerging technological and other trends in its target end markets; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; its reliance on information technology systems and susceptibility to threats to those systems, including cybersecurity threats, and risks arising from its collection and use of personal information data; regulatory changes and developments affecting Hayward’s current and future products; volatility in currency exchange rates and interest rates; Hayward’s ability to service its existing indebtedness and obtain additional capital to finance operations and its growth opportunities; Hayward’s ability to establish, maintain and effectively enforce intellectual property protection for its products, as well as its ability to operate its business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the impact of material cost and other inflation; Hayward’s ability to attract and retain senior management and other qualified personnel; the impact of changes in laws, regulations and administrative policy, including those that limit
Many of these factors are macroeconomic in nature and are, therefore, beyond Hayward’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, Hayward’s actual results, performance or achievements may vary materially from those described in this earnings release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this earnings release are made only as of the date of this earnings release. Unless required by
*NON-GAAP FINANCIAL MEASURES
This earnings release includes certain financial measures not presented in accordance with the generally accepted accounting principles in
Reconciliation of full fiscal year 2024 adjusted EBITDA outlook to the comparable GAAP measure is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. Adjusted EBITDA outlook for full year 2024 is calculated in a manner consistent with the historical presentation of this measure in the appendix.
Hayward Holdings, Inc. Unaudited Condensed Consolidated Balance Sheets (In thousands) |
||||||||
|
|
September 28, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
274,184 |
|
|
$ |
178,097 |
|
Short-term investments |
|
|
— |
|
|
|
25,000 |
|
Accounts receivable, net of allowances of |
|
|
99,932 |
|
|
|
270,875 |
|
Inventories, net |
|
|
229,363 |
|
|
|
215,180 |
|
Prepaid expenses |
|
|
15,541 |
|
|
|
14,331 |
|
Income tax receivable |
|
|
11,634 |
|
|
|
9,994 |
|
Other current assets |
|
|
18,898 |
|
|
|
11,264 |
|
Total current assets |
|
|
649,552 |
|
|
|
724,741 |
|
Property, plant, and equipment, net of accumulated depreciation of |
|
|
164,654 |
|
|
|
158,979 |
|
Goodwill |
|
|
953,175 |
|
|
|
935,013 |
|
Trademark |
|
|
736,000 |
|
|
|
736,000 |
|
Customer relationships, net |
|
|
209,836 |
|
|
|
206,308 |
|
Other intangibles, net |
|
|
92,479 |
|
|
|
94,082 |
|
Other non-current assets |
|
|
84,168 |
|
|
|
91,161 |
|
Total assets |
|
$ |
2,889,864 |
|
|
$ |
2,946,284 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Current portion of long-term debt |
|
$ |
14,079 |
|
|
$ |
15,088 |
|
Accounts payable |
|
|
73,562 |
|
|
|
68,943 |
|
Accrued expenses and other liabilities |
|
|
159,709 |
|
|
|
155,543 |
|
Income taxes payable |
|
|
825 |
|
|
|
109 |
|
Total current liabilities |
|
|
248,175 |
|
|
|
239,683 |
|
Long-term debt, net |
|
|
959,906 |
|
|
|
1,079,280 |
|
Deferred tax liabilities, net |
|
|
239,362 |
|
|
|
248,967 |
|
Other non-current liabilities |
|
|
69,266 |
|
|
|
66,896 |
|
Total liabilities |
|
|
1,516,709 |
|
|
|
1,634,826 |
|
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
244 |
|
|
|
243 |
|
Additional paid-in capital |
|
|
1,089,782 |
|
|
|
1,080,894 |
|
Common stock in treasury; 28,666,369 and 28,666,369 at September 28, 2024 and December 31, 2023, respectively |
|
|
(358,125 |
) |
|
|
(357,755 |
) |
Retained earnings |
|
|
644,831 |
|
|
|
580,909 |
|
Accumulated other comprehensive income |
|
|
(3,577 |
) |
|
|
7,167 |
|
Total stockholders’ equity |
|
|
1,373,155 |
|
|
|
1,311,458 |
|
Total liabilities, redeemable stock, and stockholders’ equity |
|
$ |
2,889,864 |
|
|
$ |
2,946,284 |
|
Hayward Holdings, Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net sales |
|
$ |
227,569 |
|
|
$ |
220,304 |
|
|
$ |
724,531 |
|
|
$ |
713,983 |
|
Cost of sales |
|
|
114,474 |
|
|
|
114,893 |
|
|
|
361,770 |
|
|
|
374,171 |
|
Gross profit |
|
|
113,095 |
|
|
|
105,411 |
|
|
|
362,761 |
|
|
|
339,812 |
|
Selling, general and administrative expense |
|
|
64,509 |
|
|
|
59,454 |
|
|
|
187,678 |
|
|
|
172,057 |
|
Research, development and engineering expense |
|
|
6,449 |
|
|
|
6,177 |
|
|
|
18,870 |
|
|
|
19,027 |
|
Acquisition and restructuring related expense |
|
|
1,145 |
|
|
|
3,348 |
|
|
|
2,488 |
|
|
|
6,220 |
|
Amortization of intangible assets |
|
|
7,576 |
|
|
|
7,523 |
|
|
|
21,425 |
|
|
|
22,777 |
|
Operating income |
|
|
33,416 |
|
|
|
28,909 |
|
|
|
132,300 |
|
|
|
119,731 |
|
Interest expense, net |
|
|
13,209 |
|
|
|
17,448 |
|
|
|
48,600 |
|
|
|
55,939 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
Other (income) expense, net |
|
|
(705 |
) |
|
|
1,932 |
|
|
|
(1,989 |
) |
|
|
1,798 |
|
Total other expense |
|
|
12,504 |
|
|
|
19,380 |
|
|
|
51,537 |
|
|
|
57,737 |
|
Income from operations before income taxes |
|
|
20,912 |
|
|
|
9,529 |
|
|
|
80,763 |
|
|
|
61,994 |
|
Provision (benefit) for income taxes |
|
|
4,411 |
|
|
|
(2,259 |
) |
|
|
16,841 |
|
|
|
12,343 |
|
Net income |
|
$ |
16,501 |
|
|
$ |
11,788 |
|
|
$ |
63,922 |
|
|
$ |
49,651 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.30 |
|
|
$ |
0.23 |
|
Diluted |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
0.29 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
215,231,886 |
|
|
|
213,416,502 |
|
|
|
214,836,643 |
|
|
|
212,933,763 |
|
Diluted |
|
|
221,436,206 |
|
|
|
220,863,228 |
|
|
|
221,251,355 |
|
|
|
220,634,232 |
|
Hayward Holdings, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (In thousands) |
|
Nine Months Ended |
||||||
|
September 28, 2024 |
|
September 30, 2023 |
|||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
63,922 |
|
|
$ |
49,651 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation |
|
|
13,929 |
|
|
|
13,018 |
|
Amortization of intangible assets |
|
|
26,299 |
|
|
|
27,803 |
|
Amortization of deferred debt issuance fees |
|
|
3,248 |
|
|
|
3,458 |
|
Stock-based compensation |
|
|
7,299 |
|
|
|
6,701 |
|
Deferred income taxes |
|
|
(8,344 |
) |
|
|
(5,965 |
) |
Allowance for bad debts |
|
|
(62 |
) |
|
|
(906 |
) |
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
(Gain) loss on sale of property, plant and equipment |
|
|
(451 |
) |
|
|
945 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
173,400 |
|
|
|
85,216 |
|
Inventories |
|
|
(4,204 |
) |
|
|
61,715 |
|
Other current and non-current assets |
|
|
(6,203 |
) |
|
|
9,500 |
|
Accounts payable |
|
|
2,871 |
|
|
|
(6,265 |
) |
Accrued expenses and other liabilities |
|
|
(868 |
) |
|
|
(27,934 |
) |
Net cash provided by operating activities |
|
|
275,762 |
|
|
|
216,937 |
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
||||
Purchases of property, plant, and equipment |
|
|
(17,552 |
) |
|
|
(22,623 |
) |
Acquisitions, net of cash acquired |
|
|
(61,636 |
) |
|
|
— |
|
Proceeds from sale of property, plant, and equipment |
|
|
311 |
|
|
|
13 |
|
Proceeds from short-term investments |
|
|
25,000 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(53,877 |
) |
|
|
(22,610 |
) |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from revolving credit facility |
|
|
— |
|
|
|
144,100 |
|
Payments on revolving credit facility |
|
|
— |
|
|
|
(144,100 |
) |
Proceeds from issuance of long-term debt |
|
|
2,886 |
|
|
|
3,320 |
|
Payments of long-term debt |
|
|
(129,971 |
) |
|
|
(9,325 |
) |
Proceeds from issuance of short-term notes payable |
|
|
6,340 |
|
|
|
6,130 |
|
Payments of short-term notes payable |
|
|
(4,676 |
) |
|
|
(5,174 |
) |
Other, net |
|
|
(427 |
) |
|
|
(149 |
) |
Net cash used in financing activities |
|
|
(125,848 |
) |
|
|
(5,198 |
) |
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
50 |
|
|
|
(1,061 |
) |
Change in cash and cash equivalents |
|
|
96,087 |
|
|
|
188,068 |
|
Cash and cash equivalents, beginning of period |
|
|
178,097 |
|
|
|
56,177 |
|
Cash and cash equivalents, end of period |
|
$ |
274,184 |
|
|
$ |
244,245 |
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information |
|
|
|
|
||||
Cash paid-interest |
|
$ |
47,965 |
|
|
$ |
56,438 |
|
Cash paid-income taxes |
|
|
26,853 |
|
|
|
14,913 |
|
Equipment financed under finance leases |
|
|
843 |
|
|
|
— |
|
Reconciliations
Consolidated Reconciliations
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Non-GAAP)
Following is a reconciliation from net income to adjusted EBITDA:
(Dollars in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net income |
|
$ |
16,501 |
|
|
$ |
11,788 |
|
|
$ |
63,922 |
|
|
$ |
49,651 |
|
Depreciation |
|
|
4,862 |
|
|
|
4,428 |
|
|
|
13,929 |
|
|
|
13,018 |
|
Amortization |
|
|
9,253 |
|
|
|
9,260 |
|
|
|
26,299 |
|
|
|
27,803 |
|
Interest expense |
|
|
13,209 |
|
|
|
17,448 |
|
|
|
48,600 |
|
|
|
55,939 |
|
Income taxes |
|
|
4,411 |
|
|
|
(2,259 |
) |
|
|
16,841 |
|
|
|
12,343 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
EBITDA |
|
|
48,236 |
|
|
|
40,665 |
|
|
|
174,517 |
|
|
|
158,754 |
|
Stock-based compensation (a) |
|
|
136 |
|
|
|
269 |
|
|
|
556 |
|
|
|
1,001 |
|
Currency exchange items (b) |
|
|
(344 |
) |
|
|
145 |
|
|
|
(470 |
) |
|
|
1,276 |
|
Acquisition and restructuring related expense, net (c) |
|
|
1,145 |
|
|
|
3,348 |
|
|
|
2,488 |
|
|
|
6,220 |
|
Other (d) |
|
|
1,920 |
|
|
|
2,784 |
|
|
|
1,657 |
|
|
|
4,367 |
|
Total Adjustments |
|
|
2,857 |
|
|
|
6,546 |
|
|
|
4,231 |
|
|
|
12,864 |
|
Adjusted EBITDA |
|
$ |
51,093 |
|
|
$ |
47,211 |
|
|
$ |
178,748 |
|
|
$ |
171,618 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income margin |
|
|
7.3 |
% |
|
|
5.4 |
% |
|
|
8.8 |
% |
|
|
7.0 |
% |
Adjusted EBITDA margin |
|
|
22.5 |
% |
|
|
21.4 |
% |
|
|
24.7 |
% |
|
|
24.0 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of Hayward’s initial public offering (the “IPO”). |
(b) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(c) |
|
Adjustments in the three months ended September 28, 2024 are primarily driven by
Adjustments in the nine months ended September 28, 2024 are primarily driven by |
(d) |
|
Adjustments in the three months ended September 28, 2024 are primarily driven by a
Adjustments in the nine months ended September 28, 2024 are primarily driven by a |
Following is a reconciliation from net income to adjusted EBITDA for the last twelve months:
(Dollars in thousands) |
|
Last Twelve
|
|
Fiscal Year |
||||
|
|
September 28, 2024 |
|
December 31, 2023 |
||||
Net income |
|
$ |
94,958 |
|
|
$ |
80,687 |
|
Depreciation |
|
|
16,894 |
|
|
|
15,983 |
|
Amortization |
|
|
35,575 |
|
|
|
37,079 |
|
Interest expense |
|
|
66,245 |
|
|
|
73,584 |
|
Income taxes |
|
|
24,898 |
|
|
|
20,400 |
|
Loss on debt extinguishment |
|
|
4,926 |
|
|
|
— |
|
EBITDA |
|
|
243,496 |
|
|
|
227,733 |
|
Stock-based compensation (a) |
|
|
825 |
|
|
|
1,270 |
|
Currency exchange items (b) |
|
|
(960 |
) |
|
|
786 |
|
Acquisition and restructuring related expense, net (c) |
|
|
9,481 |
|
|
|
13,213 |
|
Other (d) |
|
|
1,561 |
|
|
|
4,271 |
|
Total Adjustments |
|
|
10,907 |
|
|
|
19,540 |
|
Adjusted EBITDA |
|
$ |
254,403 |
|
|
$ |
247,273 |
|
|
|
|
|
|
||||
Net income margin |
|
|
9.5 |
% |
|
|
8.1 |
% |
Adjusted EBITDA margin |
|
|
25.4 |
% |
|
|
24.9 |
% |
(a) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of the IPO. |
(b) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(c) |
|
Adjustments in the last twelve months ended September 28, 2024 primarily include
Adjustments in the year ended December 31, 2023 primarily include |
(d) |
|
Adjustments in the last twelve months ended September 28, 2024 are primarily driven by a
Adjustments in the year ended December 31, 2023 primarily include |
(e) |
|
Items for the last twelve months ended September 28, 2024 are calculated by adding the items for the nine months ended September 28, 2024 plus fiscal year ended December 31, 2023 and subtracting the items for the nine months ended September 30, 2023. |
Adjusted Net Income and Adjusted EPS Reconciliation (Non-GAAP)
Following is a reconciliation of net income to adjusted net income and earnings per share to adjusted earnings per share:
(Dollars in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net income |
|
$ |
16,501 |
|
|
$ |
11,788 |
|
|
$ |
63,922 |
|
|
$ |
49,651 |
|
Tax adjustments (a) |
|
|
(451 |
) |
|
|
(4,401 |
) |
|
|
(2,203 |
) |
|
|
(2,905 |
) |
Other adjustments and amortization: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation (b) |
|
|
136 |
|
|
|
269 |
|
|
|
556 |
|
|
|
1,001 |
|
Currency exchange items (c) |
|
|
(344 |
) |
|
|
145 |
|
|
|
(470 |
) |
|
|
1,276 |
|
Acquisition and restructuring related expense, net (d) |
|
|
1,145 |
|
|
|
3,348 |
|
|
|
2,488 |
|
|
|
6,220 |
|
Other (e) |
|
|
1,920 |
|
|
|
2,784 |
|
|
|
1,657 |
|
|
|
4,367 |
|
Total other adjustments |
|
|
2,857 |
|
|
|
6,546 |
|
|
|
4,231 |
|
|
|
12,864 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
Amortization |
|
|
9,253 |
|
|
|
9,260 |
|
|
|
26,299 |
|
|
|
27,803 |
|
Tax effect (f) |
|
|
(2,815 |
) |
|
|
(3,554 |
) |
|
|
(8,360 |
) |
|
|
(9,838 |
) |
Adjusted net income |
|
$ |
25,345 |
|
|
$ |
19,639 |
|
|
$ |
88,815 |
|
|
$ |
77,575 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
|
215,231,886 |
|
|
|
213,416,502 |
|
|
|
214,836,643 |
|
|
|
212,933,763 |
|
Weighted average number of common shares outstanding, diluted |
|
|
221,436,206 |
|
|
|
220,863,228 |
|
|
|
221,251,355 |
|
|
|
220,634,232 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.30 |
|
|
$ |
0.23 |
|
Diluted EPS |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
0.29 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS |
|
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
0.41 |
|
|
$ |
0.36 |
|
Adjusted diluted EPS |
|
$ |
0.11 |
|
|
$ |
0.09 |
|
|
$ |
0.40 |
|
|
$ |
0.35 |
|
(a) |
|
Tax adjustments for the three and nine months ended September 28, 2024 reflect a normalized tax rate of |
(b) |
|
Represents non-cash stock-based compensation expense related to equity awards issued to management, employees, and directors. The adjustment includes only expense related to awards issued under the 2017 Equity Incentive Plan, which were awards granted prior to the effective date of the IPO. |
(c) |
|
Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts. |
(d) |
|
Adjustments in the three months ended September 28, 2024 are primarily driven by
Adjustments in the nine months ended September 28, 2024 are primarily driven by |
(e) |
|
Adjustments in the three months ended September 28, 2024 are primarily driven by a
Adjustments in the nine months ended September 28, 2024 are primarily driven by a |
(f) |
|
The tax effect represents the immediately preceding adjustments at the normalized tax rates as discussed in footnote (a) above. |
Segment Reconciliations
Following is a reconciliation from segment income to adjusted segment income for the
(Dollars in thousands) |
|
Three Months Ended |
|
Three Months Ended |
||||||||||||
|
|
September 28, 2024 |
|
September 30, 2023 |
||||||||||||
|
|
NAM |
|
E&RW |
|
NAM |
|
E&RW |
||||||||
Net sales |
|
$ |
194,968 |
|
|
$ |
32,601 |
|
|
$ |
185,070 |
|
|
$ |
35,234 |
|
Gross profit |
|
$ |
101,877 |
|
|
$ |
11,218 |
|
|
$ |
91,456 |
|
|
$ |
13,955 |
|
Gross profit margin % |
|
|
52.3 |
% |
|
|
34.4 |
% |
|
|
49.4 |
% |
|
|
39.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Segment income |
|
$ |
51,569 |
|
|
$ |
2,475 |
|
|
$ |
40,108 |
|
|
$ |
6,413 |
|
Depreciation |
|
$ |
4,404 |
|
|
$ |
271 |
|
|
$ |
4,027 |
|
|
$ |
246 |
|
Amortization |
|
|
1,677 |
|
|
|
— |
|
|
|
1,738 |
|
|
|
— |
|
Stock-based compensation |
|
|
107 |
|
|
|
— |
|
|
|
75 |
|
|
|
11 |
|
Other (a) |
|
|
1,704 |
|
|
|
— |
|
|
|
115 |
|
|
|
— |
|
Total adjustments |
|
|
7,892 |
|
|
|
271 |
|
|
|
5,955 |
|
|
|
257 |
|
Adjusted segment income |
|
$ |
59,461 |
|
|
$ |
2,746 |
|
|
$ |
46,063 |
|
|
$ |
6,670 |
|
|
|
|
|
|
|
|
|
|
||||||||
Segment income margin % |
|
|
26.4 |
% |
|
|
7.6 |
% |
|
|
21.7 |
% |
|
|
18.2 |
% |
Adjusted segment income margin % |
|
|
30.5 |
% |
|
|
8.4 |
% |
|
|
24.9 |
% |
|
|
18.9 |
% |
(a) |
|
The three months ended September 28, 2024 primarily includes a |
(Dollars in thousands) |
Nine Months Ended |
|
Nine Months Ended |
|||||||||||||
|
September 28, 2024 |
|
September 30, 2023 |
|||||||||||||
|
|
NAM |
|
E&RW |
|
NAM |
|
E&RW |
||||||||
Net sales |
|
$ |
609,510 |
|
|
$ |
115,021 |
|
|
$ |
585,126 |
|
|
$ |
128,857 |
|
Gross profit |
|
$ |
319,184 |
|
|
$ |
43,577 |
|
|
$ |
288,911 |
|
|
$ |
50,901 |
|
Gross profit margin % |
|
|
52.4 |
% |
|
|
37.9 |
% |
|
|
49.4 |
% |
|
|
39.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Segment income |
|
$ |
166,646 |
|
|
$ |
16,800 |
|
|
$ |
144,346 |
|
|
$ |
25,647 |
|
Depreciation |
|
$ |
12,619 |
|
|
$ |
791 |
|
|
$ |
11,952 |
|
|
$ |
694 |
|
Amortization |
|
|
4,874 |
|
|
|
— |
|
|
|
5,026 |
|
|
|
— |
|
Stock-based compensation |
|
|
176 |
|
|
|
10 |
|
|
|
417 |
|
|
|
34 |
|
Other (a) |
|
|
1,723 |
|
|
|
— |
|
|
|
503 |
|
|
|
— |
|
Total adjustments |
|
|
19,392 |
|
|
|
801 |
|
|
|
17,898 |
|
|
|
728 |
|
Adjusted segment income |
|
$ |
186,038 |
|
|
$ |
17,601 |
|
|
$ |
162,244 |
|
|
$ |
26,375 |
|
|
|
|
|
|
|
|
|
|
||||||||
Segment income margin % |
|
|
27.3 |
% |
|
|
14.6 |
% |
|
|
24.7 |
% |
|
|
19.9 |
% |
Adjusted segment income margin % |
|
|
30.5 |
% |
|
|
15.3 |
% |
|
|
27.7 |
% |
|
|
20.5 |
% |
(a) |
|
The nine months ended September 28, 2024 primarily includes a |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029460170/en/
Investor Relations:
Kevin Maczka
investor.relations@hayward.com
Media Relations:
Stephanie Knight
sknight@soleburystrat.com
Source: Hayward Holdings, Inc.
FAQ
What was Hayward Holdings (HAYW) revenue in Q3 2024?
What is Hayward's (HAYW) earnings per share for Q3 2024?
What is Hayward's (HAYW) full-year 2024 revenue guidance?